null Budgeting to Buy a New or Used Car for Your Teen Driver
Now that your teenage, soon-to-be driver will be hitting the road
with their newly-obtained license, you may be planning on buying a new
or used car. Your top priority is to purchase a vehicle that’s both
safe and reliable. But buying a new or used car for your teenage
driver also presents an opportunity to teach your teenager about the
costs and responsibilities associated with owning a car.
While your teenager’s well-being is crucial, you also want to make
sure you’re purchasing a vehicle that’s affordable. Mapping out a
budget with your teen is an effective way to determine what will work
best for your finances while also teaching him or her the fiscal
responsibility that comes with buying a car. Here are a few ways you
can get started:
Evaluate the costs. If you plan on getting auto financing to purchase your
teen’s car and he or she is under 18, you’ll be responsible for
making the payments. Evaluating your monthly expenses (i.e. mortgage
or rent, utilities, student loans, cable and Internet, etc.), can
help you determine how much of your income can be allocated towards
the cost of a new vehicle.
Develop a savings plan. Once you’ve evaluated the costs and determined a budget,
opening a car savings account to which you and your teen can
contribute weekly, bi-weekly or monthly can be a great way to get
your teen engaged in the car buying process.
Set expectations. Letting your teen driver know what they will be expected to
contribute as far as car insurance, annual registration fees, car
maintenance, etc. will help them develop a better understanding of
what it means to be a responsible driver and car owner.
If you plan on purchasing a car for your teen driver and have
bad credit or no credit, a dealer enrolled in the Credit Acceptance
auto finance program can help you get approved for auto financing,
regardless of your credit history. Just fill out this secure form on our website to get started on
your credit approval today!